On June 5, 2023, Creative Planning announced that it has cut its stake in Cardinal Health, Inc. (NYSE:CAH) by 27.9% during the fourth quarter of the previous year. This came as a surprise to many investors as Creative Planning had previously been seen as one of Cardinal Health’s biggest supporters. However, according to its most recent 13F filing with the Securities and Exchange Commission (SEC), Creative Planning had sold 6,316 shares during the last quarter and owned only 16,355 shares of CAH’s stock at the end of the reporting period. The total value of its holdings was $1,257,000.
This news came on the heels of Cardinal Health’s positive quarterly earnings report released on May 4th which showed that the company exceeded market expectations in both revenue and earnings per share (EPS). During Q1 2023, Cardinal Health raked in $50.5 billion in revenue versus analysts’ estimates of $49.63 billion and posted an EPS of $1.74 – beating consensus estimate of $1.48 by a significant margin.
Cardinal Health is a healthcare services and products company with its operations spread across hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories and physician offices. Their primary focus is on providing customized solutions that enhance supply chain efficiency for their clients while at the same time delivering cost-effective medical products and pharmaceuticals.
Despite its successful first-quarter results where revenue rose by about 12.6% YoY and EPS rose by more than 20%, shares have fallen since May due to concerns surrounding potential pandemic-related disruptions in supply chains across various industries.
Looking ahead into the future has also led to bullish predictions for Cardinal Health with sell-side analysts forecasting that it will post an impressive $5.72 earnings per share for FY2023.
Nevertheless,potential investors would be advised to monitor the situation with caution and prudence as the threat of further interruptions in logistics on a global scale remains an ever-present reality.
Cardinal Health, Inc.
CAH
Sell
Updated on: 29/11/2023
Financial Health
Unhealthy
Debt to equity ratio: Strong Sell
Price to earnings ratio: Strong Sell
Price to book ratio: Strong Sell
DCF: Strong Buy
ROE: Neutral
Cardinal Health, Inc.: Navigating Healthcare and Supply Chain Challenges with Customized Solutions
Cardinal Health, Inc.: A Closer Look at the Healthcare Services and Products Company
Ohio-based Cardinal Health, Inc. (NYSE: CAH) is a healthcare services and products company that offers customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories and physician offices. It provides medical products and pharmaceuticals as well as cost-effective solutions aimed at enhancing supply chain efficiency.
On June 5th, various hedge funds bought and sold shares of Cardinal Health. SJS Investment Consulting’s holdings in Cardinal Health increased by 888.6% in Q4 2022 to now own 346 shares valued at $27,000 after acquiring an additional 311 shares during that quarter. McElhenny Sheffield Capital Management also acquired a new stake in Cardinal Health worth approximately $36,000 during Q4 2022. Meanwhile, Capital Advisors raised its holdings by 29.5% during Q3 last year and currently owns 589 shares worth $39k after acquiring another 134 shares last quarter. Boyd Watterson Asset Management also acquired a new stake worth roughly $40k last Q4 whilst JDM Financial Group followed suit with one worth around $47k. Institutional investors and hedge funds have amassed positions which collectively represent around 88.93% of the company’s stock.
The business has a market cap of $21.54 billion with a P/E ratio of 48.61 including a price-to-earnings growth ratio of 1.19 along with a beta of just 0.76%. Moreover, it boasts an average dividend yield of around 2.37%. The stock opened yesterday at $84.59 with a fifty-day simple moving average around $81.32 whilst its two-hundred-day SMA is plain at about $78 per share fluctuating towards its minimum value range; the twelve-month low being recorded at $49 while the high hit $87.03.
Several industry analysts have recently updated their target price and outlook for the company. Barclays, Deutsche Bank Aktiengesellschaft and TheStreet have all raised their respective price targets in recent weeks while Citigroup declared a neutral rating. Meanwhile, StockNews.com started its coverage of Cardinal Health by assigning it with a strong-buy rating.
Overall, despite challenges posed by Covid-19 pandemic earlier this year, which increased demand for medical supplies and the associated challenges of logistics amidst government restrictions as well as rising manufacturing costs, Cardinal Health has persevered due to it focus on customized solutions. While there is still enormous uncertainty ahead for healthcare and supply chain companies alike, optimistic growth estimates under expectations around increased funding from President Biden’s proposed $6 trillion budget plan bodes well over the longer term. Investors should consider adopting a long-term investment strategy amid ongoing market volatility though cardinal health, inc remains firmly on many investors’ radar currently.
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